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Arovella Therapeutics Limited (AU:ALA)
ASX:ALA

Arovella Therapeutics Limited (ALA) AI Stock Analysis

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AU:ALA

Arovella Therapeutics Limited

(Sydney:ALA)

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Neutral 50 (OpenAI - 5.2)
Rating:50Neutral
Price Target:
AU$0.10
▲(25.00% Upside)
The score is primarily held back by weak financial performance—large ongoing losses and continued cash burn—despite a low-debt balance sheet and improved equity base. Technicals are supportive (price above major moving averages with positive MACD) but are tempered by an elevated RSI. Valuation remains challenging due to loss-making status and lack of dividend yield data.
Positive Factors
Low leverage / no debt
Having essentially no debt materially reduces interest burden and solvency risk over the next 2–6 months. For an R&D-heavy biotech, low leverage preserves optionality to fund programs through equity or partnerships without near-term refinancing pressure, supporting program continuity.
Strengthened equity base
A materially larger equity base improves the company’s balance sheet resilience and runway flexibility. For a pre-revenue biotech, stronger equity provides a clearer path to finance ongoing trials and R&D, reducing near-term dilution risk from emergency capital raises and enabling strategic partnerships.
Focused on CAR immunotherapies
Operating in CAR and cell therapy aligns the company with a durable, high-demand oncology trend and high scientific barriers to entry. Sustained industry interest and investment in immunotherapies can support long-term collaboration, licensing and partnership opportunities as programs advance through clinical stages.
Negative Factors
Consistent negative cash flow
Persistent negative operating and free cash flow means the business is not self-funding and will remain reliant on external financing or partnerships. Over months, continued burn pressures liquidity and forces strategic trade-offs between program spending, timelines and capital-raising impacts on shareholders.
Sustained operating losses
Ongoing negative EBIT and net losses indicate the company has yet to demonstrate operational profitability. For a biotech without product revenues, sustained losses can erode capital over time, constrain reinvestment in R&D, and increase dependence on capital markets or partners to progress programs.
Volatile, small revenues and recent decline
Very small, volatile revenues and a recent sharp decline heighten funding uncertainty because operational income cannot cover R&D or trials. This structural revenue weakness makes the company more sensitive to capital markets cycles and partnership timelines when planning multi-quarter development programs.

Arovella Therapeutics Limited (ALA) vs. iShares MSCI Australia ETF (EWA)

Arovella Therapeutics Limited Business Overview & Revenue Model

Company DescriptionArovella Therapeutics Limited, a biotechnology company, focuses on the development of therapies for the treatment of cancer and conditions that affect the central nervous system in Australia and internationally. Its product pipeline includes ZolpiMist, an oral spray of zolpidem tartrate to treat short-term insomnia, which is marketed under the brand name of Ambien or Stilnox; invariant natural killer T (iNKT), a cell therapy platform to treat blood cancer; OroMist, an oro-mucosal technology that delivers a range of drug classes through the cheeks, gums, tongue, or floor of the mouth; and Anagrelide to treat cancer. The company also develops oral sprays to treat migraine headaches, motion sickness, and drug-resistant epilepsy. It has a collaborative research agreement with Imperial College London. The company was formerly known as Suda Pharmaceuticals Ltd and changed its name to Arovella Therapeutics Limited in October 2021. Arovella Therapeutics Limited was incorporated in 1999 and is headquartered in Osborne Park, Australia.
How the Company Makes MoneyArovella Therapeutics Limited generates revenue primarily through the development and commercialization of its therapeutic products. The company collaborates with pharmaceutical companies to license its drug delivery technology and therapeutic candidates, earning milestone payments and royalties. Additionally, Arovella may receive government grants or research funding to support its development programs. Strategic partnerships and collaborations with other biotech firms contribute significantly to its revenue streams by sharing resources and expertise.

Arovella Therapeutics Limited Financial Statement Overview

Summary
Overall financials reflect an early-stage biotech profile: persistent operating losses (very low Income Statement score) and sustained negative operating/free cash flow (low Cash Flow score). This is partially offset by a low-debt balance sheet and a materially stronger equity base, which reduces near-term solvency risk but does not resolve ongoing burn.
Income Statement
12
Very Negative
The company remains in a heavy loss-making phase, with negative EBIT and net income across all reported years and very weak profitability in 2025 (annual) (net margin deeply negative). Revenue is highly volatile and small in absolute terms, including a sharp decline in 2025 (annual) versus the prior year, which increases dependence on funding rather than operations. A positive is that 2025 (annual) shows positive gross profit (versus negative gross profit in 2024), but operating losses remain very large relative to revenue.
Balance Sheet
66
Positive
The balance sheet is conservatively levered with essentially no debt in the last two annual periods (debt-to-equity at 0.0), which reduces financial risk and interest burden. Equity has strengthened materially (from ~3.8M in 2023 to ~20.1M in 2025), supporting the asset base. The key weakness is continued negative returns on equity driven by ongoing net losses, which can erode capital over time if losses persist.
Cash Flow
22
Negative
Cash generation is consistently negative, with operating cash flow and free cash flow staying meaningfully below zero each year, indicating the business is not yet self-funding. Free cash flow was slightly worse in 2025 (annual) than 2024 (annual) in absolute terms, despite a reported positive free cash flow growth rate, suggesting volatility rather than a clear improvement trend. A modest positive is that free cash flow roughly tracks reported net loss (free cash flow to net income near ~1x), implying cash burn is broadly consistent with accounting losses rather than being materially worse.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue136.00K136.00K17.00K405.90K295.81K257.35K
Gross Profit136.00K136.00K-25.98K-3.00M88.75K34.60K
EBITDA-18.92M-11.10M-10.63M-10.37M-7.87M-4.99M
Net Income-7.51M-7.51M-8.75M-10.18M-8.62M-5.05M
Balance Sheet
Total Assets21.60M21.60M13.28M5.47M9.21M10.69M
Cash, Cash Equivalents and Short-Term Investments20.88M20.88M12.71M5.18M6.07M6.72M
Total Debt0.000.000.00144.80K144.80K79.23K
Total Liabilities1.52M1.52M2.06M1.69M1.60M1.71M
Stockholders Equity20.08M20.08M11.23M3.78M7.62M8.98M
Cash Flow
Free Cash Flow-7.34M-7.34M-7.04M-6.40M-6.83M-4.06M
Operating Cash Flow-6.93M-6.93M-6.91M-6.40M-6.27M-3.54M
Investing Cash Flow-432.11K-432.11K-179.34K95.42K-566.00K-514.55K
Financing Cash Flow15.52M15.52M14.61M5.41M6.19M9.80M

Arovella Therapeutics Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.08
Price Trends
50DMA
0.08
Positive
100DMA
0.09
Positive
200DMA
0.09
Positive
Market Momentum
MACD
<0.01
Negative
RSI
72.32
Negative
STOCH
82.46
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ALA, the sentiment is Positive. The current price of 0.08 is below the 20-day moving average (MA) of 0.09, below the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 72.32 is Negative, neither overbought nor oversold. The STOCH value of 82.46 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ALA.

Arovella Therapeutics Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
AU$73.62M11.0427.24%2.81%0.65%-9.90%
52
Neutral
AU$166.28M-6.380.66%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
50
Neutral
AU$114.11M-13.97-47.98%700.00%26.88%
43
Neutral
AU$66.70M-6.47-27.39%26.64%
41
Neutral
AU$87.00M-5.26-42.68%63.46%
41
Neutral
AU$80.94M-8.11-71.87%7.65%-19.13%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ALA
Arovella Therapeutics Limited
0.10
-0.10
-51.28%
AU:ATX
Amplia Therapeutics
0.13
0.05
56.63%
AU:ATH
Alterity Therapeutics
0.01
>-0.01
-16.67%
AU:PIQ
Proteomics International Laboratories Ltd.
0.49
-0.15
-23.44%
AU:EZZ
EZZ Life Science Holdings Ltd.
1.57
-0.37
-19.25%
AU:RCE
Recce Pharmaceuticals Ltd.
0.58
0.14
32.18%

Arovella Therapeutics Limited Corporate Events

Arovella Wins FDA IND Clearance for Lead Cell Therapy ALA-101
Jan 29, 2026

Arovella Therapeutics has received U.S. Food and Drug Administration acceptance of its investigational new drug application for ALA-101, clearing the way for first-in-human Phase 1 trials in patients with relapsed or refractory CD19-positive non-Hodgkin’s lymphoma and leukaemia. The FDA decision validates ALA-101’s preclinical, manufacturing and development plans, de-risks the program, and enables Arovella to run its initial trial more efficiently in Australia under the CTN scheme while also opening sites in the U.S., creating a regulatory framework that can be leveraged for follow-on CAR-iNKT candidates such as ALA-105 and other solid tumour programs, thereby strengthening the company’s position in next-generation allogeneic cell therapies and potentially accelerating patient access to off-the-shelf treatments.

The most recent analyst rating on (AU:ALA) stock is a Hold with a A$0.09 price target. To see the full list of analyst forecasts on Arovella Therapeutics Limited stock, see the AU:ALA Stock Forecast page.

Arovella Files IND for Lead CAR-iNKT Therapy as Cash Reserves Back 2026 Clinical Push
Jan 22, 2026

Arovella Therapeutics reported progress in the second quarter of FY26, highlighted by the filing of an Investigational New Drug application with the U.S. FDA for its lead allogeneic CAR-iNKT candidate ALA-101, selection of CRO SAPRO to run a first-in-human phase 1 trial in CD19-positive lymphoma and leukaemia across Australia and New Zealand, and confirmation of potent activity for its CLDN18.2-targeting CAR within the ALA-105 solid tumour program. The company ended the quarter with $19.4 million in cash, which it expects will fund completion of ALA-101 phase 1 enrolment and advancement of its solid tumour and armouring programs, while the in-licensing of additional CAR and iNKT-related technologies from Baylor College of Medicine and the board appointment of experienced drug developer Dr Andrew Nash are intended to strengthen its technology base, clinical transition and strategic positioning as it moves toward becoming a clinical-stage cell therapy player in 2026.

The most recent analyst rating on (AU:ALA) stock is a Hold with a A$0.09 price target. To see the full list of analyst forecasts on Arovella Therapeutics Limited stock, see the AU:ALA Stock Forecast page.

Arovella Therapeutics Names New Company Secretary and CFO to Support Growth
Jan 21, 2026

Arovella Therapeutics has appointed Lachie Mallia as Company Secretary and Chief Financial Officer, effective 22 January 2026, replacing fellow Bio101 Financial Advisory director Tim Luscombe, who previously held the roles. Mallia, a director at Bio101 with extensive experience providing outsourced CFO, company secretarial and advisory services to healthcare companies, will oversee ASX communications on listing rule matters, bolstering Arovella’s governance and financial management as it advances its oncology cell therapy pipeline.

The most recent analyst rating on (AU:ALA) stock is a Hold with a A$0.09 price target. To see the full list of analyst forecasts on Arovella Therapeutics Limited stock, see the AU:ALA Stock Forecast page.

Arovella to Release 936,303 Escrowed Shares Issued for Investor Relations Services
Jan 14, 2026

Arovella Therapeutics has announced that 936,303 ordinary shares, issued on 4 August 2025 as non-cash consideration for investor relations services, will be released from voluntary escrow on 31 January 2026. The move modestly increases the company’s freely tradable share float, potentially enhancing liquidity in its stock while reflecting the use of equity-based payments to support its investor engagement activities.

The most recent analyst rating on (AU:ALA) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on Arovella Therapeutics Limited stock, see the AU:ALA Stock Forecast page.

Arovella Seeks FDA Green Light for First-in-Human Trial of Lead CAR-iNKT Therapy
Dec 30, 2025

Arovella Therapeutics has submitted an Investigational New Drug application to the U.S. Food and Drug Administration for its lead allogeneic CAR-iNKT cell therapy candidate, ALA-101, targeting CD19-positive non-Hodgkin’s lymphoma and leukaemias. Clearance of the application would enable the company to launch a first-in-human Phase 1 trial in relapsed or refractory CD19-positive blood cancers, with trial sites planned in both Australia and the United States under a more efficient regulatory pathway, marking Arovella’s transition toward becoming a clinical-stage biotech and potentially strengthening its position in the competitive cell therapy market.

Arovella Therapeutics Issues New Shares to Bolster Cancer Therapy Development
Dec 8, 2025

Arovella Therapeutics Limited has issued 371,187 ordinary shares without disclosure under the Corporations Act, complying with relevant legal provisions. This move is part of the company’s strategic efforts to strengthen its financial position and support its ongoing development of innovative cancer therapies, potentially enhancing its market presence and stakeholder value.

Arovella Therapeutics Expands Market Presence with New Securities Quotation
Dec 8, 2025

Arovella Therapeutics Limited has announced the quotation of 371,187 ordinary fully paid securities on the Australian Securities Exchange (ASX) as part of an employee incentive scheme. This move is likely to enhance the company’s market presence and incentivize its workforce, potentially impacting its operational dynamics and stakeholder interests positively.

Arovella Therapeutics Director Adjusts Shareholding
Nov 24, 2025

Arovella Therapeutics Limited has announced a change in the director’s interest, with Elizabeth Stoner exercising options to acquire additional ordinary shares. This adjustment reflects a strategic move within the company’s leadership, potentially impacting its market positioning and signaling confidence in the company’s future prospects.

Arovella Therapeutics Expands Share Issuance to Bolster Cancer Therapy Development
Nov 24, 2025

Arovella Therapeutics Limited has issued 1,157,647 ordinary shares without disclosure under specific sections of the Corporations Act, complying with all necessary legal provisions. This issuance supports the company’s ongoing efforts to enhance its position in the biotechnology sector, particularly in developing innovative cancer therapies. The move reflects Arovella’s strategic focus on expanding its therapeutic offerings and strengthening its market presence.

Arovella Therapeutics Announces Cessation of Securities
Nov 24, 2025

Arovella Therapeutics Limited announced the cessation of 1,242,353 securities due to the expiry of options or other convertible securities without exercise or conversion. This development may impact the company’s capital structure and could influence investor perceptions regarding its financial strategy and future growth prospects.

Arovella Therapeutics Expands Market Presence with New Securities Quotation
Nov 24, 2025

Arovella Therapeutics Limited has announced the quotation of 1,157,647 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move follows the exercise of options or conversion of other convertible securities, potentially enhancing the company’s financial standing and market presence.

Arovella Therapeutics Announces Investor Presentation Update
Nov 18, 2025

Arovella Therapeutics Ltd has announced an investor presentation update, which will be shared during non-deal investor meetings in Sydney, Melbourne, Hong Kong, and Singapore. This presentation aims to inform stakeholders about the company’s progress and strategic direction, potentially impacting its market positioning and investor relations.

Arovella Therapeutics Announces Director’s Change in Securities Holdings
Nov 12, 2025

Arovella Therapeutics Limited announced a change in the director’s interest, with Debora Barton exercising options to acquire 1,013,333 ordinary shares while disposing of 1,386,667 unlisted options. This transaction, executed via a cashless exercise facility, reflects an adjustment in the director’s securities holdings, potentially impacting the company’s governance and shareholder dynamics.

Arovella Therapeutics Issues New Shares to Bolster Cancer Therapy Development
Nov 12, 2025

Arovella Therapeutics Limited has issued 1,013,333 ordinary shares without disclosure under Part 6D.2 of the Corporations Act, complying with all relevant provisions. This move reflects the company’s strategic efforts to strengthen its financial position and support its ongoing development of innovative cancer therapies, potentially enhancing its market presence and stakeholder value.

Arovella Therapeutics Announces Cessation of Securities
Nov 12, 2025

Arovella Therapeutics Limited announced the cessation of 1,386,667 securities due to the expiry of options or other convertible securities without exercise or conversion as of November 12, 2025. This announcement may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategies and future growth potential.

Arovella Therapeutics Announces Quotation of New Securities on ASX
Nov 12, 2025

Arovella Therapeutics Limited announced the quotation of 1,013,333 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to strengthen its financial position and support its ongoing development projects, potentially enhancing its market presence and providing value to its stakeholders.

Arovella Therapeutics Appoints New Director with No Initial Securities Interest
Nov 12, 2025

Arovella Therapeutics Limited has announced the appointment of Andrew Nash as a director, effective from November 12, 2025. The initial director’s interest notice reveals that Andrew Nash currently holds no relevant interests in securities or contracts related to the company. This announcement is a procedural update required under listing rules, and it provides transparency to stakeholders about the director’s financial interests, ensuring compliance with corporate governance standards.

Arovella Therapeutics Advances CAR-iNKT Cell Platform with Baylor College Collaboration
Nov 5, 2025

Arovella Therapeutics Ltd has exercised its exclusive option with Baylor College of Medicine to negotiate a definitive license agreement for chimeric antigen receptor (CAR) and iNKT cell platform intellectual property. This move positions Arovella to enhance its CAR-iNKT cell products, targeting neuroblastoma and liver cancer, with promising early-stage clinical trial results, potentially impacting its industry positioning and stakeholder interests.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Feb 04, 2026